Cost of a Franchise

Get a rough estimate of these items from your franchisor:

1. Initial licensing fees: Most franchisors will charge an initial licensing fee for the use of the trademark, business format, and or distribution rights.  This fee can be paid in installments depending on your terms.
    
2. Training Costs & Promotional Fees: This fee is some times separate from the initial licensing fee.  You will probably be required to attend some kind of franchise training program.
    
3. Facility leases: A franchisee may be a tenant, a sub leaser of the franchisor, or required to purchase a location. 
    
4. Construction and Equipment Costs: A franchisee is responsible for all costs associated with the property, like construction, furniture, wiring, etc.
    
5. Inventory Costs: If you have a product, you will be required to stock it and keep it in inventory.
    
6. Licensing: You will be required to apply for licenses with state and city governments.  There is a nominal fee that will be charge.

The cost will always be higher then you think it will be.  It is expensive to own and operate a business.  Try to get financing or a partner to reduce the risk to yourself.